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A tax agent accused of seeking loan applications based on falsified notices of assessments has been granted temporary reprieve from his registration termination decision.
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Termination for alleged falsified loan applications temporarily halted
09 September 2020
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9 minute read
The Administrative Appeals Tribunal has granted a stay on the Tax Practitioners Board’s decision to terminate the registration of Western Sydney-based tax agent Mahinthan Mahathevan.
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The TPB had moved to terminate Mr Mahathevan’s registration based on a number of alleged findings, including what the tribunal had deemed as the most serious allegation in assisting eight clients to make loan applications to ANZ Bank supported by false notices of assessment of income tax.
Other adverse findings included non-compliance with lodgement and taxation obligation for his entities and failing to comply with mandatory CPE requirements over several years.
In moving to grant the stay, AAT senior member Robert Olding noted that Mr Mahathevan’s prospects in succeeding to overturn the termination decision was not “hopeless” and would turn on the facts of the ANZ allegations.
Mr Olding was of the view that there was a chance the tribunal would not be satisfied with the ANZ allegations, pointing to the fact that current material showed that there was no direct evidence of Mr Mahathevan’s involvement in the falsification of the notices.
He also noted that the TPB was only able to speak to one of the eight clients, with the conversation suggesting that the relevant documents were provided to Mr Mahathevan by the client.
On the other findings that Mr Mahathevan had failed to comply with individual and his associated entities’ lodgement obligations, Mr Mahathevan submitted evidence to prove that he had now brought his compliance obligations up to date.
Mr Mahathevan also submitted that he had taken steps to rectify his CPE shortcomings and had not committed any other breaches in his 12 years as a tax agent.
“The board’s findings are of a serious nature. On the other hand, Mr Mahathevan has been in practice for an extended period without evidence of serious shortcomings in maintaining the standards expected of a tax agent in the period prior to the events particularised in the allegations,” Mr Olding said.
“The Tribunal on review may also be persuaded that there was no deliberate dishonesty by Mr Mahathevan. Further, that he accepts his shortcomings and has taken steps to put his house in order, so to speak.
“In those circumstances, the Tribunal may be persuaded that a different sanction is appropriate. Much may depend on the Tribunal’s conclusions in relation to the ANZ Bank issue.
“Overall, I accept that Mr Mahathevan has an arguable case for a lesser sanction which weighs in favour of granting a stay.”
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